Greentech Lead India: Developing nations across North
Africa and Asia are showing greater interest in renewable energy investments,
especially solar energy. Emerging markets across the MENA, Eastern Europe,
Latin America and Southeast Asia have stepped up their renewable energy
investments to join the bandwagon of developed countries.
However solar industry is facing a number of challenges
due to the current economic conditions affecting several markets.
In 2011, solar power dominated all the investment in
global renewable energy industry. Solar power accounted for 49 percent of the
total $209 billion investments. The once dominant wind sector claimed 34
percent. Biopower, geothermal and small hydro investments made up the remaining
17 percent on the same period. Â
Globally installed capacity of PV modules also increased
in 2011 due to the glut of PV modules that hit the market. After hydro and wind
power, PV is now the third most important renewable energy in terms of globally
installed capacity.
Over the first three months of 2012 U.S. PV market
saw record installations of 506 MW, more than any other first quarter on
record. Strong growth in the commercial market segment has fueled this
record growth. This quarter’s activity brings the total amount of solar PV
across America to 4,427 MW. Concentrating solar power (CSP) facilities are providing
516 MW of electric power to the United States. Together, solar electric
capacity reached 4,943 MW.
The increase in forecasted installations for 2012 is due
to accelerated timelines for large-scale utility projects,
greater-than-expected first quarter growth in the New Jersey commercial market.
China leads the solar power sector in Asia, with
a series of solar power projects. Chinese companies invested in new solar power
projects targeting the Middle East and North Africa (MENA) markets. The demand
from domestic market also has increased.
India is becoming one of the fastest growing solar
markets worldwide. Strong policies introduced by the Indian government want to
turn the country into one of the most important “solar states” over
the coming years. Cumulative installed solar capacity in India surged from 17.8
MW to over 500 MW with in two years due to these policies.
India’s ambitious national
solar program has catalyzed rapid growth in the solar market driving
solar energy prices low and demonstrating how government policy can stimulate
clean energy markets.
Globally, solar industry growth rate reached almost 70
percent in 2011. The new grid-connected PV capacities reached to 27.7 GW in
2011 and almost 21 GW of the grid could be counted in Europe.
The European share in the global PV arena is more than 75
percent of all new capacity in 2011, and Italy and Germany, account for nearly
60 percent of global market growth in 2011.
Germany is leading the table in terms of cumulative
PV capacity. According to a report by Federal Association of the Energy and
Water Industry, solar energy production in Germany increased 40 percent
from the previous year and the industry accounted for 10 percent
of country’s total electricity production in May.
Despite this growth in installations and investments
the revenue from
the solar industry is expected to drop to $92 billion in 2012 from
$110 billion in 2011 due to crashing prices. Even the boom of 2011 was not
sufficient to utilize all of the world’s module capacity, which reached 50 GW
and pushed prices down to $1/W. With China’s 12th Five-Year plan calling for
major expansions in solar capacity, global markets will still see strong
downward price pressure.
Prakashbabu
editor@greentechlead.com